Question
part 1 Find the present values of the following cash flow streams at a 10% discount rate. Do not round intermediate calculations. Round your answers
part 1 Find the present values of the following cash flow streams at a 10% discount rate. Do not round intermediate calculations. Round your answers to the nearest cent.
0 | 1 | 2 | 3 | 4 | 5 |
Stream A | $0 | $100 | $350 | $350 | $350 | $300 |
Stream B | $0 | $300 | $350 | $350 | $350 | $100 |
Stream A $
Stream B $
- What are the PVs of the streams at a 0% discount rate? Round your answers to the nearest dollar.
Stream A $
Stream B $
part 2
An investment will pay $150 at the end of each of the next 3 years, $200 at the end of Year 4, $300 at the end of Year 5, and $600 at the end of Year 6. If other investments of equal risk earn 5% annually, what is its present value? Its future value? Do not round intermediate calculations. Round your answers to the nearest cent.
Present value: $
Future value: $
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